Kongsberg Automotive Consolidates China Operations Into Wuxi Hub for Long-Term Growth

Kongsberg Automotive ASA (KA) has announced a strategic consolidation of its operations in China, bringing manufacturing, engineering, and support functions under a single operational hub in Wuxi. The restructuring follows the company’s acquisition of the remaining ownership stake in Kongsberg Automotive Morse (Shanghai) Co., Ltd. (KAMS) during 2025. The initiative is intended to strengthen operational efficiency, improve cost competitiveness, and support KA’s long-term expansion strategy in one of its most important global automotive markets.

China Operations Consolidation Plan

Under the consolidation program, production lines and key support functions currently operating across multiple facilities will be centralized at the company’s manufacturing plant and technology center in Wuxi. Activities carried out in Shanghai and Shiyan will gradually be phased out, with completion targeted by May 30, 2026. Following the transition process, the legal entity KAMS will be formally deregistered. The company stated that consolidating operations into one integrated location is expected to streamline workflows, improve resource utilization, and create a stronger operational platform for future growth.

Operational Transition Timeline

The restructuring process will be executed in phases to ensure operational continuity while production and engineering activities are transferred to Wuxi. KA emphasized that the move aligns with its broader strategy of optimizing its manufacturing footprint and strengthening technical capabilities in strategic markets. By concentrating expertise and production resources within a single advanced facility, the company aims to improve responsiveness to customer requirements while supporting long-term competitiveness in the automotive components sector.

Key Details of Kongsberg Automotive China Consolidation

Strategic Importance of the Wuxi Hub

The Wuxi facility will serve as the company’s primary operational and engineering center in China after the transition is completed. KA indicated that the consolidation is designed to improve engineering and technical capabilities while establishing a more efficient and scalable manufacturing structure. Centralizing operations is also expected to support stronger collaboration between production and development teams, helping the company better align with evolving automotive market requirements in China and across the broader Asia-Pacific region.

Frequently Asked Questions

Why is Kongsberg Automotive consolidating its China operations?
Kongsberg Automotive is consolidating its China operations to improve efficiency, reduce operational complexity, and strengthen engineering capabilities. The company plans to centralize production lines and support functions at its Wuxi manufacturing and technology center after acquiring the remaining ownership in KAMS. Activities in Shanghai and Shiyan will be phased out by May 30, 2026. The restructuring is intended to optimize cost competitiveness and establish a stronger operational platform to support long-term growth in the Chinese automotive market.

What will happen to KAMS after the consolidation?
KAMS will be deregistered after the operational transition process is completed. Following the acquisition of the remaining ownership stake in 2025, Kongsberg Automotive decided to integrate manufacturing, engineering, and support functions into its Wuxi facility. As operations in Shanghai and Shiyan are gradually phased out, the legal entity KAMS will no longer be required. The deregistration forms part of the company’s broader strategy to streamline operations and create a more centralized structure for its activities in China.